So are Landlords finished?

Notice that you are the only person to have said that; this is the exact definition of a strawman.

The income tax version is a tax credit so the 20% of your interest bill comes direct off your tax bill.

Taxable income pre interest - £10,000

Tax at 45% - £4,500

20% tax credit against your £5k interest - £1,000

Tax bill £3,500

Corporate version

Taxable income pre interest - £10,000

Interest deduction £5,000

Tax at 25% - £1,250

In the income tax version the interest saves you £1,000 and in the corporation tax version it saves you £1,250. So yep that ballpark is still the size I said it was. The corporate still pays less tax but that's because the corporate tax rate is lower. If you want to get that cash out then you're going to suffer an income tax liability (not to mention there are costs to running a company that aren't there for an individual).

I’m no accountant but your figures still prove that if you have a year with no expenditure, boilers, plumbing, elec repairs etc as a private landlord you are pretty much being taxed on turnover, bar the 20% tax credit on whatever you finance costs may be, and still demonstrates the two tier tax system.

I would guess the rise in section 21 evictions are not mainly down to private landlords throwing out tenants to get someone else in who pays more, or who has complained about the standard of the property, although of course this can happen. But maybe it’s mainly just to sell up because of the increased tax burden, or to evict due to rent arrears because of the issues with section 8 timescales. Be interesting to see the actual figures.

You are like the ends of a loaf of bread, everybody touches you but nobody wants you…..

An accountant would understand that that is still a case of being taxed on taxable profits, which are defined as accounting profits subject to any adjustment required or authorised by law in calculating profits for Income Tax or Corporation Tax purposes. In this sense finance costs are no different to any other disallowable expense defined in the tax statutes. Just because your property income happens to have few other allowable expenses does not mean it is a tax on turnover.

As well as the Corporate Interest Restriction and unallowable purpose rules that markh1973 linked to, there is also the example of the anti-hybrid mismatch rules.

There are also sector specific examples, e.g. Ring Fenced Corporation Tax for the production of Oil & Gas on the UK Continental Shelf (30% charged on ring fenced profits which preclude excessive interest charges) and the related Supplementary Charge (a further 10% on ring fenced profits but with no deduction at all for finance costs).

There is also nothing unusual in having differences between the income tax and corporation tax regimes.

And since landlords like to point out that property is just another asset class, you need look no further than the very next part of ITTOIA 2005 (Property Income is part 3): Part 4 Savings and Investment Income does not allow interest expense to be deducted from dividend income on a leverage investment portfolio.

Perhaps if more landlords understood how taxes work, there'd be no need for the Let Property Campaign.

The tube was replaced. They have no place in a residential property IMO.

It's fine if you think shaker is dated, but it's pretty much shaker or flat panel for the majority of kitchens options these days. The old kitchen is literally what comes up first if you google 1980's Kitchen Doors!

Regardless of personal taste, its undeniably refurbished which was my point.

If anything, the refurb is the epitome of a “landlord special” replace the door fronts and worktop leaving the ratty tiles, old fixtures etc

What about shared rentals? When they get sold off, are they all going to be bought by multiple buyers?

Let’s see how that works out.

Yeah. What will take their place?